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Village Roadshow (VRL) 2015 AGM Report

Company/ASX Code : Village Roadshow Limited (VRL)
Venue :
9am Village Cinemas Jam Factory
500 Chapel St, South Yarra
Melbourne, Victoria
Monitor : Mr Peter Saalmans
AGM Details / NoM : Thursday 19th November, 2015
# of Attendees : Approx 30 shareholders plus 20 visitors
# Holdings represented by ASA : 28
Value of Proxies : $556,000
# Shares Represented by ASA : 77,000
Market Capitalisation : $1.1 billion

First strike for Village Roadshow

As in previous years, the AGM was held in a small, very comfortable cinema, and was competently and smoothly managed by the Chairman. He introduced each of his fellow directors and the audit partner at the beginning of the meeting.

The Chairman presented the financial and directors’ reports, which covered Village Roadshow’s various core businesses. He blamed “atrocious weather” in Sydney and the Gold Coast for poor attendances at the company’s theme parks which suffered a 38% fall in profit in 2014/15. This was offset by a 20% increase in the profits earned by the Cinema Exhibition business, but the overall result was a 4.1% fall in company profits. There were only two questions from the floor arising from the financial and directors’ reports.

Unlike previous years, the AGM did not feature any trailers of new films or other video presentations. Instead the Chairman read out a list of coming attractions and was very bullish about their contributions to the company’s financial performance.

The Chairman was positive about the performance of the cinema related businesses so far this financial year. He also said that the Gold Coast theme parks are performing “in accordance with expectations” whereas Wet ‘n’ Wild Sydney is below expectations but “anticipated to pick up”.

Three formal resolutions were put to the meeting. The first two related to the re-election of two directors which were each passed unanimously on a show of hands (with more than 99% of proxy votes in favour).

A ballot was held on the third resolution - to adopt the Remuneration Report. The result was only 68.5% in favour, compared with 76% at the last AGM. This resulted in the company recording a “first strike”. There was no discussion on the Remuneration Report at the AGM and the reasons for shareholders’ objections are not known. Of the proxies received by the ASA only 7% were against the report, 29% were for and the remaining 64% were left open. As the remuneration report was broadly consistent with ASA’s voting guidelines, the open proxies were voted in favour of the report.